Answer:
Vaughn must sell 1588 Units in 2020 to maintain the same income level as 2019
Explanation:
Selling price for 2020 = 500 per unit
Variable cost for 2020 = 300 x 10% + 300
= 300 x 0.1 + 300
= 30 + 300
= 330 per unit
Fixed cost for 2020 = 240000-10000
= 230000
Required unit = (Fixed cost+Net income)/Contribution margin per unit
= (230000+40000) / (500-330)
= 270000 / 170
= 1588.24
Required unit = 1588 Units
Answer:
<u>February.</u>
Desired ending inventory = 10% of March Cost of goods(COGS):
= 10% * 35,000
= $3,500
Inventory needed = COGS + ending inventory
= 32,000 + 3,500
= $35,500
Beginning inventory = January ending inventory = $3,200
Required Purchases = Inventory needed - Beginning inventory
= 35,500 - 3,200
= $32,300
<u>March</u>
Desired ending inventory = 10% of April COGS:
= 10% * 40,000
= $4,000
Inventory needed:
= 35,000 + 4,000
= $39,000
Beginning inventory = February ending inventory = $3,500
Required purchases:
= 39,000 - 3,500
= $35,500
Solution :
We know that the exchange takes place when the FMV receive is equal to the FMV given up.
Where the FMV = fair market value
The commercial substance means the future cash flows exchange.
The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.
The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :
Transaction Debit ($) Credit ($)
Asset(new) 11,000
Accumulated depreciation(old) 9,000
Asset (old) 28,000
Cash 2000
The journal entries for Delaware Corp. when the exchange lacks the commercial substance.
Transaction Debit ($) Credit ($)
Asset(new) 16,000
Accumulated depreciation (old) 10,000
Loss 2500
Assets (old) 28,000
Answer:
after 9 years:
FV $15,625.2437
in 14 years:
FV $31,223.0270
last, at the nineteenth year:
FV $55,222.1501
Explanation:
We have to solve for the annuity of 1,200 dollar with a yield of 9% at the proposed times:
C 1,200.00
time 9
rate 0.09
FV $15,625.2437
time = 14
FV $31,223.0270
time = 19
FV $55,222.1501
Answer:
a. in order to calculate this we must assume that the economy entered a recession:
degree of operating leverage = [($20 - $70)/$70] / [($260 - $520)/$520] = -0.7143 / -0.5 = 1.43
b. $14 million
Explanation:
strong economy:
total sales $520 million
<u>variable costs $420 million</u>
gross profit $100 million
<u>fixed costs $30 million</u>
EBIT $70 million
<u>income taxes $21 million</u>
net income $49 million
weak economy:
total sales $260 million
<u>variable costs $210 million</u>
gross profit $50 million
<u>fixed costs $30 million</u>
EBIT $20 million
<u>income taxes $6 million</u>
net income $14 million